Published on July 19th, 2013 | by Alice Aires0
5 Benefits of Seychelles Offshore Formation
There are many countries that an offshore formation can be incorporated in. The Isle of Man, Gibraltar, Hong Kong and the Bahamas are all classified as tax havens. The Seychelles is also a tax haven and there are many benefits to having an offshore formation there:
No Tax on Profits and Capital Gains
The rate of tax which is applied to profits and capital gains is 0%. If a company reports huge profits, it doesn’t have to pay any tax. Even in European countries which apply a lower rate of tax for higher profits, a considerable sum still has to be paid. However, the opposite applies in the Seychelles. When property or stocks are sold, no Capital Gains tax has to be paid. If a company sells its premises in another country for a handsome sum, no tax applies.
Secrecy is upheld
Information about directors and shareholders at a Seychelles offshore company cannot be obtained by a third party. If many investors are needed at a Seychelles offshore company, there can be more interest in it. This is because their personal information will never be shared. As a result, an offshore formation could receive more investment.
No Auditing is Required
It can cost a lot of money to audit a company. Auditing is never done on an offshore company in the Seychelles. Therefore, a company doesn’t accrue any additional expense which they would normally have to pay to be audited. Although company finance reports don’t have to be submitted to the Seychelles government, it is recommended that they are kept up-to-date so that a manager or CEO can refer to them.
It doesn’t Take Long
In some tax havens, several days might pass before an offshore company becomes a legal entity. However, this problem isn’t an issue in the Seychelles. This is because a Seychelles offshore company can be incorporated in a couple of days. As soon as someone wants to have an offshore formation in this jurisdiction, this normally happens within twenty four hours.
Meetings can Take Place Anywhere
When an offshore formation has directors that are from around the world, airfare has to be paid so that they are all present for a meeting, such as an AGM. A company doesn’t accrue additional expense because of a meeting. This is because the Seychelles government does allow a meeting to take place anywhere in the world. As a result, a meeting can even be held online. As there are many free-to-use websites around which enable business professionals to attend meetings, it can be held between many people and no money has to be spent. As a result, the money which is saved can be reinvested elsewhere.